New cybersecurity obligations

The NIS2 Directive came into force in October 2024, expanding EU cybersecurity requirements to many more businesses. If you're a medium-sized company in a covered sector, you likely have new obligations—including how you handle email infrastructure.

Published January 2026 · 12 min read

What is NIS2?

The Network and Information Security Directive 2 (NIS2) is the EU's updated cybersecurity framework, replacing the original 2016 NIS Directive. It came into effect on 18 October 2024, with member states required to transpose it into national law.

The short version: NIS2 significantly expands which businesses must meet cybersecurity requirements, introduces personal accountability for management, and mandates specific incident reporting timelines.

Key changes from NIS1

  • Broader scope — Many more sectors and company sizes covered
  • Size-cap rule — All medium and large entities in covered sectors must comply
  • Management accountability — Personal liability for leadership
  • Stricter reporting — 24-hour initial notification, detailed follow-ups
  • Supply chain focus — Must assess supplier cybersecurity
  • Higher penalties — Up to €10 million or 2% of global turnover

Does NIS2 apply to your business?

NIS2 uses a "size-cap rule"—if you're a medium-sized or large entity in a covered sector, you're likely in scope.

Size thresholds

ClassificationEmployeesAnnual turnoverNIS2 status
Large enterprise250+> €50 millionIn scope
Medium enterprise50-249€10-50 millionIn scope
Small enterprise< 50< €10 millionGenerally exempt*

*Some small businesses may still be in scope if they provide critical services (e.g., sole provider of an essential service in a region) or are in specific high-risk categories like trust service providers.

Sectors covered

NIS2 covers significantly more sectors than its predecessor:

Essential entities (highest obligations)

  • Energy (electricity, oil, gas, hydrogen)
  • Transport (air, rail, water, road)
  • Banking and financial markets
  • Healthcare
  • Drinking water and wastewater
  • Digital infrastructure
  • ICT service management (B2B)
  • Public administration
  • Space

Important entities

  • Postal and courier services
  • Waste management
  • Chemical manufacturing/distribution
  • Food production and distribution
  • Manufacturing (medical, computers, electronics, machinery, vehicles)
  • Digital providers (marketplaces, search engines, social platforms)
  • Research organizations

The supply chain effect

Here's where NIS2 gets interesting for smaller businesses: even if you're not directly in scope, your customers might be.

Why this matters

NIS2 requires covered entities to assess and manage cybersecurity risks in their supply chain. This means your enterprise customers may start asking for security certifications, compliance documentation, and evidence of security practices—even if you're a small vendor.

In practice: if you sell software or services to medium/large European businesses in covered sectors, expect more security questionnaires and compliance requirements.

What NIS2 requires: The four pillars

1. Risk management

Covered entities must implement "appropriate and proportionate" technical and organizational measures to manage cybersecurity risks. For email infrastructure, this includes:

  • Access control — Multi-factor authentication (MFA) is essentially mandatory
  • Encryption — Data must be encrypted in transit and at rest
  • Network security — Firewalls, intrusion detection, segmentation
  • Incident handling — Documented procedures for detecting and responding to incidents
  • Business continuity — Backup and recovery procedures
  • Supply chain security — Vendor risk assessment

2. Corporate accountability

This is a significant change from NIS1: management bodies are personally accountable for ensuring cybersecurity measures are implemented.

What this means in practice

  • Board members and executives can face personal sanctions
  • Mandatory cybersecurity training for leadership (Germany requires 4 hours within 3 years)
  • Management must approve risk management measures
  • Governance failures can result in temporary bans from leadership roles

3. Incident reporting

NIS2 introduces strict, multi-stage reporting requirements for "significant incidents":

TimelineRequirementContent
24 hoursEarly warningInitial notification that a significant incident has occurred
72 hoursIncident notificationFull report detailing the breach and mitigation measures
1 monthFinal reportRecovery efforts, root cause, long-term improvements

A "significant incident" is one that causes or could cause severe operational disruption, financial loss, or affects other entities.

4. Business continuity

Entities must have plans for maintaining operations during and after cybersecurity incidents:

  • Backup management — Regular, tested backups with secure storage
  • Disaster recovery — Documented procedures for system restoration
  • Crisis management — Defined roles and communication procedures
  • Testing — Regular testing of continuity plans

Email infrastructure under NIS2

Email is often a primary attack vector and a critical business system. NIS2's requirements have specific implications for how you manage email infrastructure.

Authentication requirements

NIS2 explicitly mentions "multi-factor authentication or continuous authentication solutions" as required measures. For email:

  • MFA for email access — All email accounts should require MFA
  • MFA for administrative access — Email system administration must use MFA
  • API authentication — Email integrations should use secure authentication (API keys, OAuth)

Encryption requirements

NIS2 requires "voice, video, and text encryption" for communications. For email infrastructure:

  • TLS for email transport — Mandatory encryption in transit
  • Encryption at rest — Stored emails must be encrypted
  • End-to-end encryption — Consider for sensitive communications

Access control

The principle of least privilege applies to email systems:

  • Limit mailbox access — Only necessary personnel should access shared mailboxes
  • Audit email access — Log and monitor who accesses what
  • Third-party access — Carefully control what email automation tools can access

The OAuth mailbox problem

Traditional email automation (Zapier, Power Automate) requests full OAuth access to your entire mailbox. Under NIS2's least-privilege requirements, this broad access is harder to justify. Selective email processing—where automation only touches specific email streams—aligns better with NIS2's access control principles.

Supply chain considerations

Your email infrastructure vendors are part of your supply chain. Under NIS2, you should assess:

  • Where is email data processed? — Jurisdiction matters for incident reporting
  • What security certifications do vendors have? — SOC 2, ISO 27001, etc.
  • How do vendors handle incidents? — Will they notify you within your reporting timeline?
  • What access do vendors have? — Can they read your email content?

Penalties and enforcement

NIS2 significantly increases penalties compared to NIS1:

Essential entities

Up to €10 million or 2% of global annual turnover, whichever is higher

Important entities

Up to €7 million or 1.4% of global annual turnover, whichever is higher

Beyond fines, enforcement powers include:

  • Regular audits and security inspections
  • Binding instructions to implement specific measures
  • Temporary bans on individuals holding management positions
  • Public disclosure of non-compliance

Implementation timeline

NIS2 became applicable on 18 October 2024, but national transposition varies:

  • October 2024 — NIS2 in effect, NIS1 repealed
  • Germany — Implementation act passed November 2025, effective December 2025
  • Other member states — Varying timelines; some behind schedule

If you're in a covered sector, the time to prepare is now—not when your specific country finalizes transposition.

Practical steps for email infrastructure

Immediate actions

  1. Enable MFA everywhere — Email accounts, admin panels, API access
  2. Audit current access — Who can access what email data?
  3. Review OAuth permissions — What third-party apps have email access?
  4. Document your email flow — Where does email data go? Who processes it?

Medium-term improvements

  1. Implement logging — Track email access and processing
  2. Establish incident procedures — How will you detect and report email-related incidents?
  3. Assess vendors — Request security documentation from email service providers
  4. Review encryption — Ensure TLS is enforced, consider additional encryption

Strategic considerations

  1. Minimize third-party access — Selective processing over full mailbox access
  2. Consider jurisdiction — EU-hosted email infrastructure simplifies compliance
  3. Plan for incidents — Your 24-hour reporting clock starts when you detect an issue
  4. Train leadership — Management needs to understand email security risks

How EmailConnect aligns with NIS2

We designed EmailConnect with security-first principles that support NIS2 compliance:

  • No mailbox access — Selective processing only, minimal data exposure
  • EU jurisdiction — All data processed in EU, simplifying incident reporting
  • Encryption — TLS 1.3 in transit, AES-256 at rest
  • Audit logging — Complete processing logs for compliance
  • MFA available — Optional but recommended for all accounts
  • Configurable retention — Control how long data is stored

Sources and further reading

Questions about NIS2 and your email infrastructure? We're not lawyers, but we're happy to discuss the technical aspects. Get in touch.